Nebius Group N.V.

Nebius Group N.V. operates as a global AI cloud platform delivering a unified full-stack AI cloud that spans the complete AI journey from compute capacity to software and services enabling fast and efficient training and inference at scale. The company is headquartered in Amsterdam and listed on Nasdaq, offering one of the few global, at scale, multi-tenant clouds purpose built for AI with a significant presence in Europe, the U.S., and other geographies around the world. The industry is intensely competitive and evolving at a rapid pace, characterized by continuous technological advancements and evolving customer needs, with competition based on brand recognition, product quality, price, and innovation.

The company's key competitors for its core AI infrastructure business are specialized cloud service providers focused on AI, including CoreWeave, Crusoe and Lambda, as well as general purpose cloud computing providers including Amazon (AWS), Google (Google Cloud Platform), Microsoft (Azure), and Oracle. Core competitive advantages include a full-stack, AI-native cloud approach from silicon to software, in-house hardware design and development with lower cost of ownership, longstanding partnerships with critical AI hardware providers such as NVIDIA, and a Reference Platform NVIDIA Cloud Partner status. The company also holds a significant minority stake in ClickHouse and a significant equity stake in Toloka.

Nebius generates revenue by providing customers with a comprehensive and integrated AI cloud platform underpinned by high-performance GPU compute capacity, storage, and networking resources, as well as value-add software solutions. Revenue from the cloud platform is recognized as services are provided, with both on-demand pay-as-you-go pricing and fixed reserved capacity contracts. The company also generates revenue from TripleTen, an edtech platform focused on reskilling individuals for careers in technology, and Avride, a developer of autonomous driving technology, though Avride has made only a limited contribution to total revenue to date.

The Nebius AI cloud business generated revenues of $480.3 million ¹ in 2025, up from $68.3 million ² in 2024 and $9.6 million ³ in 2023. The platform offers solutions for IT operations, DevOps and Platform Engineering teams, Data Scientists, ML Researchers and ML Engineers, and AI Engineers or AI Product Managers. The foundation of the cloud is a highly efficient and sustainable hardware infrastructure layer that delivers scalable compute, storage, and networking resources engineered for high-performance AI workloads, with servers and racks designed in-house. The company operates four types of data centers: Greenfield, Brownfield, Build-to-suit, and Co-location, and as of December 31, 2025, had approximately 170 MW ⁴ of active power capacity across the globe. In 2025, the company owned and operated a data center in Finland, signed a build-to-suit location in New Jersey and signed several co-location agreements in Kansas City, the UK, Israel, France and Iceland.

TripleTen, an edtech platform, generated revenues of $54.1 million ⁵ in 2025, up from $28.8 million ⁶ in 2024 and $8.2 million ⁷ in 2023. As of December 31, 2025, the company offered seven immersive program tracks – AI / Machine Learning, AI Automation, Data Analytics, Cybersecurity, Quality Assurance, AI Software Engineering, and UX/UI design – principally in the US and Latin America. Avride, the autonomous vehicles business unit, generated revenues of $1.3 million ⁸ in 2025, up from $0.3 million ⁹ in 2024. In October 2025, Uber participated alongside us in an investment of up to $375 million ¹⁰ into Avride. In March 2025, Avride entered a strategic partnership with Hyundai for the joint development of an autonomous driving platform and will initially deploy 100 ¹¹ Hyundai Ioniq 5 SUVs retrofitted with autonomous driving technology.

In 2025, the company raised over $5 billion ¹², primarily through equity and convertible debt at interest rates between 1.0% and 3.0% ¹³. In June 2025, the company issued convertible notes in an aggregate principal amount of $1,000.0 million ¹⁴, in two equal tranches due 2029 and 2031. In September 2025, the company issued additional convertible notes in an aggregate principal amount of $3,162.5 million ¹⁵, in two equal tranches due 2030 and 2032. Concurrently with the September 2025 convertible notes offering, the company issued 12.4 million ¹⁶ Class A shares in a public offering for aggregate gross proceeds of $1,150.0 million ¹⁷. In November 2025, the company established an at-the-market equity program covering up to 25 million ¹⁸ Class A shares. In February 2026, the company completed the acquisition of Tavily, an agentic search business. In March 2026, the company entered into a securities purchase agreement with NVIDIA Corporation, selling a pre-funded Class A shares purchase warrant for aggregate gross proceeds of approximately $2 billion ¹⁹.

Total revenues for the year ended December 31, 2025 increased by $438.3 million ²⁰, or 479% ²¹, from $91.5 million ²² in 2024 to $529.8 million ²³ in 2025. Net income from continuing operations was $9.8 million ²⁴ in 2025, compared to a net loss from continuing operations of $352.0 million ²⁵ in 2024 and $299.0 million ²⁶ in 2023. Net cash provided by operating activities from continuing operations was $401.9 million ²⁷ in 2025, compared to net cash used in operating activities of $269.9 million ²⁸ in 2024. As of December 31, 2025, $3,678.1 million ²⁹ was recorded in cash and cash equivalents.

A primary growth vector is the significant continuing expansion of the data center footprint. In February 2026, the company announced the expansion of its data center footprint to include nine additional sites across seven locations in the US (Missouri, Alabama, Oklahoma, and Minnesota) and Europe (France, UK) and the Middle East (Israel), bringing total contracted power to more than 2 GW ³⁰. The company is developing several facilities in the U.S., a market in which it has limited experience operating, and in Europe, and is exploring other appropriate locations including Asia and Central Asia. The company intends to continue to purchase, build-to-suit or enter lease agreements with respect to additional data center capacity. In January 2026, the company announced that Nebius will be among the first NVIDIA Cloud Partners to bring the next-generation accelerated computing platform, the NVIDIA Vera Rubin NVL72, to customers in the US and Europe.

Another major growth vector is the expansion of the customer base and go-to-market strategy, particularly through securing long-term customer contracts with large hyperscalers. In 2025 and early 2026, the company secured significant long-term committed contracts with two large hyperscalers, Microsoft and Meta. Effective as of September 7, 2025, the company entered into a commercial agreement with Microsoft Corp, pursuant to which the company is providing Microsoft access to dedicated GPU infrastructure capacity over a five-year term, with a total contract value estimated to be up to about $17.4 billion ³¹ through 2031. On November 1, 2025, the company entered into a Cloud Infrastructure Services Agreement with Meta, with a total contract value of approximately $2.9 billion ³². On March 13, 2026, the company entered into an Infrastructure Services Agreement with Meta, with a total contract value of up to approximately $27 billion ³³. The company is also actively building out its global sales team and plans to strategically focus its sales and go-to-market organization build out targeting a number of key enterprise verticals including physical AI, healthcare and life sciences, media and entertainment, retail and e-commerce, and financial services.

The company anticipates that depreciation and amortization expense will increase in absolute terms as it continues to invest in technology infrastructure and data center facilities. In January 2026, the company completed an assessment of the useful lives of servers and network equipment and concluded that the estimated useful lives of such assets should be extended from four to five years. Based on the servers and network equipment placed in service as of December 31, 2025, the company expects this change in accounting estimate will reduce the depreciation expenses for fiscal year 2026 by approximately $167.6 million ³⁴. The company expects to raise additional equity or debt financing to support its growth, and will likely also pursue secured financing arrangements, including asset-backed or other collateralized structures.

The company is continuing to build out its senior management team and is expanding its sales, marketing, and customer success teams with hires from leading technology companies, including hyperscalers and neocloud providers. As of December 31, 2025, Nebius had approximately 1,500 ³⁵ employees, the majority of whom are engineers. The company is also continuing to implement a companywide remediation project, with the support of external consultants, to enhance the control framework and address material weaknesses in internal controls, and expects this project to be completed by the end of 2026.

In 2025, the company raised over $5 billion ³⁶, primarily through equity and convertible debt at interest rates between 1.0% and 3.0% ³⁷. In the first quarter of 2026, the company raised more than $6 billion ³⁸ in additional equity and convertible debt financing. The company expects to continue to evaluate other opportunities, including new sources of capital, such as asset-backed financing. The company does not intend to pay dividends in the foreseeable future. Purchases of property and equipment and intangible assets were $4,066.0 million ³⁹ in 2025, compared to $807.5 million ⁴⁰ in 2024 and $82.9 million ⁴¹ in 2023.

The company faces significant headwinds including the capital-intensive nature of its core business which is currently not profitable, and its ability to continue to operate and grow will depend in large part on its ability to raise additional equity or debt financing. The company is currently dependent on a limited number of suppliers, relying on Nvidia for the GPU chips it uses and on a limited number of other suppliers for other key components, exposing it to supply chain risks. Technological developments in generative AI and inference, such as the development of AI models that require less computation power than earlier models, may result in decreased or differing demand for offerings. The company also faces risks related to the ongoing and potential escalation of geopolitical conflicts, including hostilities involving the United States, Israel, and Iran, which could disrupt operations and supply chains.

The company has identified two material weaknesses in its internal control over financial reporting, related to fixed assets and revenue recognition in respect of the TripleTen business unit. The company expects remediation efforts to be completed by the end of 2026. The company also faces risks related to the evolving and complex regulatory frameworks across multiple jurisdictions concerning AI tools and data centers, including the AI Act in the European Union, and export controls regarding the semiconductor industry.

The core business is capital-intensive and currently not profitable, and the ability to continue to operate and grow depends in large part on the ability to raise additional equity or debt financing; in 2025 the company raised over $5 billion ⁴² and in the first quarter of 2026 raised more than $6 billion ⁴³ in additional equity and convertible debt financing. The company is currently dependent on a limited number of suppliers, relying on Nvidia for the GPU chips it uses, and any supply chain disruptions, delays in delivery or increased costs could adversely affect growth plans. Technological developments in generative AI and inference, such as the development of AI models that require less computation power than earlier models, may result in decreased or differing demand for offerings. The company has identified two material weaknesses in its internal control over financial reporting, and if unable to remediate them, may not be able to accurately or timely report financial condition or results of operations. The company faces significant and evolving competition from specialized cloud service providers including CoreWeave, Crusoe and Lambda, and general purpose cloud computing providers including Amazon (AWS), Google (Google Cloud Platform), Microsoft (Azure), and Oracle.

Management's message emphasizes the company's transformation into a global AI cloud platform delivering a unified full-stack AI cloud, with a focus on scaling infrastructure, expanding the customer base, and securing long-term contracts. Key strategic priorities include expanding the global data center footprint, building out the sales and go-to-market organization, and securing financing to support growth ambitions. Management highlights the signing of strategic, long-term contracts to provide capacity to Microsoft and Meta as critical to operating and financial performance as the company fulfills obligations over the life of contracts of five years ⁴⁴. Management also emphasizes the importance of access to capital, noting that in 2025 the company raised over $5 billion ⁴⁵, primarily through equity and convertible debt at interest rates between 1.0% and 3.0% ⁴⁶, and in the first quarter of 2026 raised more than $6 billion ⁴⁷ in additional equity and convertible debt financing.